best way to fix my credit (should i apply debt consolidation or call each on of the debtors n work a deal out)?
June 8, 2010 by
Filed under bad debt consolidation loan
my score is about 530(very bad) i never had a credit card, loan , house, nothing like that! its just utility’s, medical,cell phone bills n its about 5000$ i own the most n am not sure y mi score is so low but i think is because i never pay my bills on time n some of them i never even pay them !so pls pls if u no y my credit is so low n have an idea about what i should do BETWIN calling everyone i own money to n work out a deal or go debt consolidation with all the debt in one !
This is what you do. Pay miniums on all but the lowest expense. on the lowest expense pay it off as much as you can. After it’s paid off go to the next highest debt up and do the same all the way up the ladder. Soon you’ll have everything paid off.
Note don’t take on new debt while doing this! After you are done use credit only for building your life with investments that bring a return. Read some of what’s on http://www.richdad.com
A lot of debt consolidation programs are scams so be careful and tread on thin ice if you decide to go that route.
Here is what you need to do:
1) Every year, you can get a free credit report, so go online on freecreditreport.com and get yourself one so you have all your debts in front of you.
2) If the debt is older then 4 to 5 years, let it go and ignore it because by that point, it isn’t really hurting your credit. It’s not great of course, but the newer stuff hurts you more.
3) I vote on writing each debtor with a “pay to delete” letter (sent certified mail of course) basically, you are saying to them, I will pay “x” amount of money to you if you agree to take the debt off of my credit report completely. If they say yes, then jump on that faster then gravy because taking the bad debt off of your credit report is a great way to go, lol You want to write not call because if they agree to do it over the phone, then you pay, they can turn around and say, “we never said that!” it is a way to cover your butt.
4) Get yourself a secured credit card and put only 30% of the limit on it each month AND PAY IT OFF IN FULL EACH MONTH NOT ONLY THE MINIMUM BALANCE!! This is a great way to raise your credit score because if you go with a card like the one at Public Savings Bank, then it wont show up on your credit report as “secured” but as a regular credit card which obviously helps matters. Read up on them is my suggestion.
I hope I at least helped a little and gave you some ideas!!
There are several companies out there that do grant loans to individuals with poor credit assuming you have a weekly paycheck. I would not advocate using this type of financial unless it is absolutely necessary. It can be very expensive especially the fees they charge.
http://www.worldbestloans.com/
However, there are also many, many loan sharks out there that will take your last dime with no remorse. You must be very careful in this area and check out every potential lender (better business bureau is a good source) and of course read the fine print very carefully.
Сredit repair workеd fine to fix my credit. They disputed and removed lots of bad items from my credit report. I used this service – credit-report-score.10001mb.com